Soybean is extending gains for the fifth straight day as investors are still digesting the WASDE report and news from China that its soybeans imports have decline considerable in the last year.
China is importing fewer soybeans in 2019 according to customs data due to Sino-US trade war and deadly African swine fever.
China’s imports of soybean fell 11.5% between May and June to 6.51 million tonnes, down 25% from June 2018, and 15% less YTD compared with the same period of 2018.
In this framework, investors are betting for a reestablishment of the demand, and prices are still trading up. On Friday, soybeans rallied to test the 9.000 area, and it is now posting 0.64% gains at 8.980.
On the week, soybean is performing a strong period with 3.30% gains in the last five days with the unit recovering all previous week losses. The grain seems supported by the 20 and 50 days moving averages at 8.680 and 8.715 respectively.
Grains report for Friday, July 12, 2019
Wheat is consolidating levels on Friday after the rally performed on Thursday. The unit is ready to close the week with gains after recovering from early losses in the week.
On Friday, wheat jumped to trade at 5.206, its highest level since July 1, but the unit found resistance at the 20-day moving average around 5.195, which is now containing the pair.
Currently, wheat is trading 0.21% positive on the day at 5.170. Investors are closing positions on profit-taking mode after Thursday rally.
On the week, the grain is performing 1.20% gains after recovering from 50-week moving average at 4.930 earlier in the week. A positive close would be the first one in the last four weeks.
Corn positive for the second day
Price of corn has accelerated on Friday as the unit is extending gains from Wednesday and Thursday bottoms at 4.060 to trade as high as 4.460 on Friday. Currently, the unit is moving 1.80% positive at 4.450.
On the week, the unit is closing its second period with substantial gains as the unit is rallying 3.06% in the last five days.
Sugar is trading flat on Friday as the unit is consolidating losses performed on Thursday. On the day, sugar is 0.07% at 0.1215. On the week, sugar is closing almost unchanged as the unit is trading just above the 0.1200 level, as it has been doing in the last three periods.
Coffee remains inside the range it has been trading since the beginning of the week between 105.30 and 108.00. On the week, however, Coffee is falling 1.10% as the unit is extending previous week rejection of the 116.00 area.